Limited liability company (LLC) is one of the most preferred types of company in Delaware. An LLC has a flexible structure, easy maintenance, and very few compliance requirements.
How to register an LLC in Delaware? Many entrepreneurs think that forming a Delaware LLC is complicated. However, the registration process turns out to be quite simple. In fact, you can complete the process in 3 steps. Let’s explore how to successfully set up an LLC in Delaware with BBCIncorp.
I. Benefits of Delaware LLCs
Delaware LLCs bring investors many attractive benefits such as:
Uncomplicated formation process with minimal requirements
You only need to file very little information to form an LLC in Delaware. There are no meeting or voting requirements at all.
High level of privacy
Delaware is one of the few states that allow the names of the managers and members to be excluded when filing the documents. You don’t have to disclose any information about the members of the LLC to incorporate your company.
The flexibility of Delaware LLCs comes from two things:
Fewer restrictions on personnel responsibilities – Your managers, members, or you don’t have to be residents of Delaware to form an LLC. As per the law, your LLC manager and member can be one person.
Freedom of contract – The LLC Operating Agreement created by the members of the LLC decides the structure as well as the rules of that LLC. This customized business structure and rules are tailored to fit the distinct needs and operations of an LLC in Delaware.
Great asset protection
The creditor is unable to obtain any portion of the LLC’s assets if you or a member of your LLC is involved in a lawsuit.
Multiple taxation options
When forming an LLC in Delaware, you can choose how your LLC is taxed with two options:
- Taxed as a corporation
- Taxed as a partnership
Basically, the series of LLC is a normal LLC. But in Delaware, you can register for different series. Each series is treated as an individual LLC that operates within the original LLC without paying extra franchise taxes or additional registered agents.
Well-respected and transparent legal system
Delaware has one of the most advanced and flexible statutes in the US. In addition, the Delaware court uses judges instead of the jury to decide cases regarding business matters, which significantly enhances transparency.
II. Delaware LLC Registration Steps
You can set up an LLC in Delaware by yourself following the 3 steps below.
Step 1. Pick your Delaware LLC name
Firstly, you need to follow these guidelines to come up with an appropriate name for your LLC:
- Your LLC name must include the suffix “limited liability company”, or “L.L.C”, or “LLC”;
- Your LLC name can include your name or another member’s name;
- Your LLC name must be unique. It should not be similar to other businesses and confused with any government agency’s name.
Always check your LLC name availability in advance through the government’s name check service. If you intend to build your company’s website, remember to check the domain availability. Once your LLC name is approved by the Secretary of State, it is reserved for 120 days. You can further extend the reservation for another 120 days by paying an additional fee.
Step 2. Submit a Delaware LLC Formation Certificate
In the second step, you have to fill in and submit a Certificate of Formation to the Division of Corporations. Remember, a Certificate of Formation for an LLC in Delaware is required to include 2 pieces of information:
- The name of your LLC in Delaware.
- The detailed information of your Delaware LLC registered agent (name and address).
When you apply on your own, you can submit this form by uploading the PDF file on the government’s website or by mail or by post. Note that if you submit the application by post, don’t forget to include a cover memo along with the Formation Certificate for contact purposes. It must contain your name, address, email, and phone number.
Step 3. Wait for the result
The result will be delivered in a couple of weeks once you have successfully submitted the Certificate of Formation. In general, the processing time should take 3 to 4 days. If you desire to receive the result faster, you will have to pay an additional fee. You will receive a stamped Certificate of Formation if your application is approved.
Overall, the 3 steps above are what you need to do to start an LLC in Delaware. If you are looking for a professional service provider to help you set up a Delaware LLC with no hassle, go for BBCIncorp. We’ll provide every essential service to ensure your company formation goes smoothly. Check out our Delaware company formation services!
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